20090827HSBC Life Insurance Shanghai e

HSBC Insurance
News Release
27 August 2009
HSBC LIFE INSURANCE COMPANY LIMITED
COMMENCES OPERATIONS IN SHANGHAI
HSBC Life Insurance Company Limited (HSBC Life), a 50:50 joint venture between
HSBC Insurance (Asia) Limited (HSBC Insurance) and Beijing-based The National
Trust Ltd. (National Trust), commenced operations today. The new company provides
a platform to distribute insurance products under the HSBC brand in one of world’s
fastest growing life insurance markets and supports the HSBC Group’s wealth
management strategies in mainland China.
Headquartered in Shanghai, HSBC Life will principally act as a bancassurer operating
through bancassurance partnerships as channels for distribution. However, the
company will also employ an agency force. While the new company has a national
operating remit, it will seek operating licences for other Mainland cities in phases.
HSBC Life has a registered capital of RMB500 million.
Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation
Limited, remarked at the press conference: “Today marks another milestone in our
long-term commitment to mainland China, a market of enormous growth potential
and at the centre of HSBC’s emerging markets strategy. It would be very difficult for
us to continue to claim to be one of the world’s top insurers and China’s largest
foreign bank if we did not have an insurance business on the Mainland. This market is
simply too big and too important to the global economy.”
Dennis Chan, Chairman of National Trust, added: “We share the same business vision,
management philosophy and corporate governance standards as HSBC. The
establishment of this joint venture will create a great opportunity for us to capitalise
on the considerable growth potential of the insurance market in China. We are
delighted to bring our understanding of the local market to the new company.”
David Fried, Chairman of HSBC Life, and also Chairman and Chief Executive
Officer of HSBC Insurance for Asia-Pacific, said: “Life insurance premiums in China
rose by 48.3 per cent to RMB733.8 billion1 in 2008, making the Mainland one of the
world’s fastest growing insurance markets and the second largest in Asia after Japan.
However, insurance purchases are concentrated in the urban coastal regions and
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HSBC Life Insurance Company Limited commences operations in Shanghai /2
insurance penetration is still at a low of 3.3 per cent. With China’s demographics,
large population and under-penetrated insurance market, it is without a doubt that the
Mainland will play a significant role – not only for our Asian insurance platform but
for the Group’s global insurance ambitions.”
HSBC Life will offer products on retirement, educational, medical, protection and
wealth accumulation insurance services. It will target the burgeoning affluent and
high-net worth segments.
To mark the launch of the new life insurance company, HSBC Life, together with
Fudan University, will launch a 5-year education-to-the poor programme in Guizhou
Province. HSBC Life will donate RMB1 million between 2009 and 2014 to fund the
programme.
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Media enquiries:
Gareth Hewett +852 2822 4929 garethhewett@hsbc.com.hk
Vinh Tran +852 2822 4924 vinhtran@hsbc.com.hk
Notes to editors:
Footnote:
1. Figures from China Insurance Regulatory Commission statistics for 2008.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of
the HSBC Group which, with around 8,500 offices in 86 countries and territories and assets of
US$2,422 billion at 30 June 2009, is one of the world’s largest banking and financial services
organisations.
HSBC Insurance (Asia-Pacific) Holdings Limited
HSBC Insurance (Asia-Pacific) Holdings Limited is the parent company of four underwriting
companies: HSBC Insurance (Asia), HSBC Life (International), HSBC Insurance (Singapore) and
HSBC Amanah Takaful (Malaysia) (49 per cent held). Its shareholdings also include 50 per cent less
one share of Hana HSBC Life Insurance in Korea, 26 per cent of Canara HSBC Oriental Bank of
Commerce Life Insurance in India, 10 per cent of Bao Viet Holdings in Vietnam and 50 per cent of
HSBC Life Insurance Company Limited, a jointly-held insurance company in mainland China with
The National Trust Ltd. In Asia, the HSBC Group also holds a 16.78 per cent stake in Ping An
Insurance of mainland China and has representative offices in Beijing, Shanghai and Guangzhou.
HSBC Life Insurance Company Limited
Headquartered in Shanghai, HSBC Life Insurance Company Limited is a 50-50 joint venture between
HSBC Insurance (Asia) Limited and The National Trust Ltd. With a registered capital of RMB500
million, the company offers comprehensive insurance and retirement services to both individual and
corporate customers. HSBC Life employs both bancassurance partnerships and an agency sales force
as channels for distribution.
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